The unit of product is the cost object when the plantwide overhead rate method is used.

Question

Quizplus · Accepted Answer

In the plantwide overhead rate method, the plantwide overhead rate is calculated based on the total estimated overhead costs and a selected cost driver (such as direct labor hours or machine hours) for the entire plant. This rate is then applied to the total units produced to allocate overhead costs to each unit. Therefore, the unit of product is indeed the cost object in this method.

The Unit of Product Is the Cost Object When the Plantwide